Q1. You buy a season pass to the philharmonic symphony hall. You paid $250 for five performances. What is the money cost to you of sleeping through one of the performances? Explain.
Q2. Suppose a country increases government purchases by $100 billion. Suppose the multiplier is 1.5 and the economy's real GDP is $5,000 billion. Which direction does aggregate demand curve shifts and how much?
Q3. The type of manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job, GDP would have been higher, even though the amount of out-put would have been identical. Why is this? Does this make sense?